Quotation Briglauer, Wolfgang, Gugler, Klaus, Dürr, Niklas. 2020. A retrospective study on the regional benefits and spillover effects of high-speed broadband networks: Evidence from German counties. International Journal of Industrial Organization. 74 102677


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Abstract

This study aims to assess the economic benefits of high-speed broadband within and across neighboring counties in Germany. Utilizing a balanced panel dataset of 401 German counties with data from 2010 to 2015 as well as different panel estimation techniques, we find that an increase in average broadband speed has a significantly positive effect on regional GDP in the average German county. Furthermore, we find that broadband deployment in German counties induces not only substantial economic benefits in terms of direct effects within counties but also positive regional externalities across counties. According to our estimation results, an increase in average bandwidth speed by one unit (1 Mbit/s) induces a rise in regional GDP of 0.18%. This effect is almost doubled if we also take regional externalities into account (0.31%). Moreover, we find that regional agglomeraton effects are of particular relevance for rural counties. Our cost-benefit analysis of subsidies based on conservative estimates suggests efficiency gains, as the total economic per capita benefits (€164) of subsidy programs to encourage broadband expansion exceeded their associated per capita costs (€114).

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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal International Journal of Industrial Organization
Citation Index SSCI
WU Journalrating 2009 A
WU-Journal-Rating new FIN-A, STRAT-B, VW-B, WH-B
Language English
Title A retrospective study on the regional benefits and spillover effects of high-speed broadband networks: Evidence from German counties
Volume 74
Year 2020
Page from 102677
Reviewed? Y
URL https://www.sciencedirect.com/science/article/pii/S0167718720301004?dgcid=author
DOI https://doi.org/10.1016/j.ijindorg.2020.102677
Open Access N

Associations

People
Briglauer, Wolfgang (Details)
Gugler, Klaus (Details)
External
Dürr, Niklas (ZEW, Germany)
Organization
Research Institute for Regulatory Economics FI (Details)
Research areas (ÖSTAT Classification 'Statistik Austria')
2949 Telecommunications (Details)
5341 Economic policy (Details)
5370 Industrial economics (Details)
5426 Information society (Details)
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